Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Non‐executive directors and the UK's new combined code on corporate governance

Non‐executive directors and the UK's new combined code on corporate governance Purpose – A revised Combined Code on corporate governance was introduced in the UK in 2003 which set out a number of new provisions relating to the composition of the company's Board of Directors and its main Committees. The Code gives greater prominence to the role of non‐executive directors in a company's corporate governance structures and decision‐making processes. This paper examines the main provisions of the Code relating to non‐executive directors and the emphasis it places on the importance of non‐executives being “independent”. Design/methodology/approach – The paper discusses the main issues concerning the effectiveness of non‐executive directors, drawing in part of the evidence provided by a sample of large UK companies. Findings – Most companies “comply” with the Code's requirements relating to non‐executive directors and endorse the positive contribution they make to Board and Committee work. Practical implications – Considers the pros and cons of the role of non‐executives and the issue of what constitutes “ independency”. Originality/value – This is one of the first papers to examine the provisions of the new Code relating to non‐executive directors. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Business Strategy Series Emerald Publishing

Non‐executive directors and the UK's new combined code on corporate governance

Business Strategy Series , Volume 9 (6): 6 – Nov 7, 2008

Loading next page...
 
/lp/emerald-publishing/non-executive-directors-and-the-uk-s-new-combined-code-on-corporate-1b4yvm0FW0

References (9)

Publisher
Emerald Publishing
Copyright
Copyright © 2008 Emerald Group Publishing Limited. All rights reserved.
ISSN
1751-5637
DOI
10.1108/17515630810923595
Publisher site
See Article on Publisher Site

Abstract

Purpose – A revised Combined Code on corporate governance was introduced in the UK in 2003 which set out a number of new provisions relating to the composition of the company's Board of Directors and its main Committees. The Code gives greater prominence to the role of non‐executive directors in a company's corporate governance structures and decision‐making processes. This paper examines the main provisions of the Code relating to non‐executive directors and the emphasis it places on the importance of non‐executives being “independent”. Design/methodology/approach – The paper discusses the main issues concerning the effectiveness of non‐executive directors, drawing in part of the evidence provided by a sample of large UK companies. Findings – Most companies “comply” with the Code's requirements relating to non‐executive directors and endorse the positive contribution they make to Board and Committee work. Practical implications – Considers the pros and cons of the role of non‐executives and the issue of what constitutes “ independency”. Originality/value – This is one of the first papers to examine the provisions of the new Code relating to non‐executive directors.

Journal

Business Strategy SeriesEmerald Publishing

Published: Nov 7, 2008

Keywords: Corporate Governance; Non‐executive directors; Boards

There are no references for this article.